Millrock makes a bold move into B.C.’s Golden Triangle

POSTED ON December 14, 2015 BY Tommy Humphreys
CATEGORY Featured Interview, Millrock Resources,

MRO CEO Greg Beischer

Millrock Resources (MRO - TSXV) is a mineral exploration company following the prospect generator business model. That means Millrock generates exploration targets and finds deeper pocketed partners to pay for the expensive stuff like helicopter rentals and drilling, while Millrock usually retains a project interest, and earns money for managing the work programs.

A lot of successful mining investors have speculated in prospect generators, often sprinkling money in several of the better quality ones in hopes of capturing discovery-like returns. It should be no surprise then that Millrock, a roughly $5.38 million market cap company, is almost 70% held by influential resource investors including John Tognetti, Brent Cook and Rick Rule.

In addition to recruiting prominent investors, Millrock has been successful in finding solid joint venture partners to explore roughly 40 projects since 2008, although a minable discovery has remained elusive. Past joint venture partners have included Teck Resources, First Quantum Minerals, Kinross Gold, Vale, Altius Minerals and others.

Millrock is known for its expertise in Alaskan mineral exploration, and President and CEO Greg Beischer, a seasoned explorationist and mining entrepreneur, runs the company out of Anchorage, Alaska. Millrock has eight projects in the state.

In 2014, Millrock acquired a Mexican exploration company that came with a dozen exploration projects, a geological database and local management.

This morning, the company announced it has picked up three large exploration projects in the Golden Triangle region of northwestern British Columbia, where some of the richest precious metals mines in the world have been found. Millrock executed eight different agreements to acquire the projects and consolidate royalties, and paid $313,000 and 2,732,998 shares (subject to a 16-month lock-up).

News release: Millrock Expands Into Stewart Golden Triangle District, British Columbia

Here’s a quick snapshot of the three projects:

The 20,276 hectare Todd Creek property had a historical and non NI-43101 compliant resource of 207,000 tons grading 5.85 g/t Au (Hemlo Gold Mines 1998 Annual Report). Todd Creek is adjacent to Pretivm Resources' southeast boundary. There’s been not much modern exploration on the property. Exploration permits are in place for 2016.
The 32,000 hectare Oweegee Dome project is adjacent to Pretivm Resources’ Brucejack project and adjacent to the east of Seabridge Gold’s KSM project, two of the richest development-stage gold projects. There are numerous untested targets at Oweegee Dome, according to Millrock.
The newly consolidated and 7,300 hectares Poly property has numerous untested targets, many revealed by rapid glacial melting. Poly’s exploration permits are also in place for 2016

B.C."s Golden Triangle region (MRO.V projects not shown) via MINING.com

Millrock CEO Greg Beischer told CEO.CA a map of the projects is being finalized, and will be available soon on the company’s website.

“It’s a big move for Millrock into the Golden Triangle district of British Columbia, where I worked as a young geologist in the early 1980s,” Beischer said. “We’re intending to assert ourselves as the premier prospect generator company in that region.”

Millrock will invest some of its own money to organize and analyze all available data at its newly acquired B.C. projects, according to Beischer. He does not expect Millrock to drill its BC projects in 2016, but he will be looking for joint venture partners.

“It wasn’t that easy to put these deals together, and bigger companies aren’t as nimble as we are. We are good at that. The second key is we make it easy for big company geologists to understand the potential of the properties we own. We clean up any database for a project, we make sure any maps open up when we send the digital files, and we make sure it is all summarized so they can easily see what the exploration potential is.”

“The exploration that’s been done in this area has been done in fits and starts as capital is available. With such a broken land pattern, it makes it difficult to explore the big picture. We’ve tried to capture as much of the favourable structures and stratigraphy as we can in these large cohesive claim blocks so we can take that district-scale approach to the exploration.”

Beischer talked about his strategy in the current mining and exploration bear market.

“If we keep doing good science, good exploration work, over time we’re going to make discoveries. It’s a sustained effort over time, it’s not just pulses of exploration when there’s an abundance of venture capital available. We’re in this for the long term and it’s a long-term business.”

“We’re being aggressive in project acquisition, but that’s the only place we’re being aggressive in spending money right now. We have to be really careful, because I just don’t know how long this bad market is going to go on and we have to be prepared to wait it out. At the same time, I want to take absolute advantage of the tremendous bargains that we’ve been able to pick up in the last year and a half.”

“In Mexico, we bought an entire exploration company that came with a dozen projects, people that know what they’re doing, and a great database, that I think was worth the purchase price on its own.” Beischer says Millrock is close to securing its second and third joint-venture partners in Mexico.

“In Alaska over the last three months, we’ve picked up two former producing gold mines that have excellent-looking exploration potential, and now we’ve picked up three large projects in the Golden Triangle. We’ll be looking at more acquisitions, judiciously deploying the cash we’ve raised.”

The company’s Peninsula project in Alaska saw $2 million worth of exploration this summer in partnership with First Quantum Minerals. Beischer said he would have liked to see higher-grade results.

“Discovery of a mineable deposit is what we’re after and as you know, that doesn’t happen very often. Two thirds of our shares are owned by influential shareholders. If we give them any exploration success, we’ll see it in our share price.”

Millrock closed a $1.331 million financing Dec 10, 2015. Beischer expects Millrock to conclude 2015 with approximately $2.5 million in cash. Following the acquisition and recent financing, Millrock will have approximately 31.663 million shares outstanding and last traded at 17 cents ($5.38 million market capitalization). Millrock has an additional 1,391,500 options and 20,578,649 warrants outstanding.

For more information, visit Millrock’s web site and read the company’s filing statements on SEDAR for important risk disclosures.

Subscribe to the Millrock channel in chat.ceo.ca - the investment conference in your pocket.

Legal Disclaimer/Disclosure: This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of CEO.CA only and are subject to change without notice. CEO.CA assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report. Millrock Resources Inc. is a CEO.CA client. Either the author, Pacific Website Company Inc. (CEO.CA parent) or its consultants or employees may from time to time hold or transact in the securities mentioned without notice. At the time of writing, the author holds shares and warrants in Millrock Resources Inc. Some statements in this document contain forward-looking information. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include without limitation the completion of planned expenditures, the ability to complete exploration programs on schedule and the success of exploration programs.

Tommy Humphreys

Tommy Humphreys, 30, is an entrepreneur, investor and writer from Vancouver, Canada. He founded CEO.CA, a popular junior mining and Canadian finance blog, in 2012. He has been the president of Pacific Website Company Inc., a private marketing and web development company, since 2007. Tommy has authored articles for Globe and Mail, Financial Post and others. He speaks at select conferences. Reach him by email: tommy@ceo.ca. Follow him on Twitter: @TommyHump More →

Twitter: @tommyhump

tommyhump@gmail.com

Tommy Humphreys

Twitter: @tommyhump

tommyhump@gmail.com

Disclaimer:

Readers are advised that the material contained herein is solely for information purposes. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities. The information contained herein is based on sources which the publisher believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete statement or summary of the available data. Any opinions expressed are subject to change without notice. The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. They may from time to time have a position in the securities of the companies mentioned herein, and may change their positions without notice. (Any significant positions will be disclosed explicitly. This article is not intended to meet your specific individual investment needs and it is not tailored to your personal financial situation. Nothing contained herein constitutes, is intended, or deemed to be — either implied or otherwise — investment advice. Thomas Humphreys, Pacific Website Company Inc., and other entities in which he has an interest, employees, officers, family, and associates may from time to time have positions in the securities or commodities covered in these publications or web site. We reserve the right to buy and sell such securities or commodities without notice to readers. While the information herein is believed to be accurate and reliable it is not guaranteed or implied to be so. The information herein may not be complete or correct; it is provided in good faith but without any legal responsibility or obligation to provide future updates. Neither Thomas Humphreys, nor anyone else, accepts any responsibility, or assumes any liability, whatsoever, for any direct, indirect or consequential loss arising from the use of the information in these publications or web site.

Forward-Looking Statements: This article may include certain "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "forecast", "expect", "potential", "project", "target", "schedule", budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the potential of the Company's properties are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Company's expectations include actual exploration results, changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, delays or inability to receive required approvals, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date of this article. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Always do your own due diligence. We seek safe harbor.